Ministry of Electronics & IT
Production of Electronic Goods
As per data received from industry associations, India’s production of electronics is Rs 640,810 crore in 2021-22 .
Over the last three years, the import of electronic raw materials, finished electronic goods and electronic components is as under:
Import Value 
|
|
|
|
2019-20
|
|
2020-21
|
|
2021-22
|
|
Finished Goods
|
|
2,69,530
|
|
2,88,498
|
|
3,55,968
|
|
Components
|
|
1,15,557
|
|
1,12,927
|
|
1,93,745
|
|
Total Imports
|
|
3,85,088
|
|
4,01,426
|
|
5,49,713Source Directorate General of Commercial Intelligence and Statistics 
Government has taken several measures for the expansion of electronics manufacturing in the country. As a result, percentage share of imported finished electronics goods with respect to total imports of electronic goods has decreased from 69% in 2019-20to 64% in 2021-22, whereas, the percentage share of imported electronic components with respect to total imports of electronic goods has increased from 30% in 2019-20 to 35% in 2021-22, indicating a favorable shift in domestic electronics manufacturing.
The steps taken by the Government for the expansion of electronics manufacturing in the country are listed in Annexure.
Annexure
Steps taken by the Government to promote electronics manufacturing
National Policy on Electronics 2019: The National Policy on Electronics 2019  has been notified on 25.02.2019. The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing  by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.
To attract and incentivize large investments in the electronics value chain and promote exports, following three Schemes have been notified under the aegis of NPE 2019:
- Production Linked Incentive Scheme  for Large Scale Electronics Manufacturing notified vide Gazette Notification No.CG-DL-E-01042020-218990 dated April 01, 2020 provides an incentive of 4% to 6% to eligible companies on incremental sales  involved in mobile phone manufacturing and manufacturing of specified electronic components, including Assembly, Testing, Marking and Packaging  units.
Second Round of the PLI Scheme for Large Scale Electronics Manufacturing was launched on 11.03.2021 for incentivizing Electronic Components. Under the Second Round, incentives of 5% to 3% shall be extended on incremental sales of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four  years.
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors  notified vide Gazette Notification No.CG-DL-E-01042020-218992 dated April 01, 2020 provides financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.
- Modified Electronics Manufacturing Clusters  Scheme notified vide Gazette Notification No.CG-DL-E-01042020-218991 dated April 01, 2020 provides support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory  sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country. The Scheme provides financial assistance for setting up of both EMC projects and Common Facility Centres  across the country.
- Production Linked Incentive Scheme  for IT Hardware notified vide Gazette Notification No. CG-DL-E-03032021-225613 dated March 03, 2021provides of 4% to 2% / 1% on net incremental sales  of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four  years.The Target Segment under PLI Scheme includes  Laptops  Tablets  All-in-One PCs and  Servers.
100% FDI: As per extant Foreign Direct Investment  policy, FDI up-to 100% under the automatic route is permitted for electronics manufacturing , subject to applicable laws/ regulations; security and other conditions.
Modified Special Incentive Package Scheme :
To offset disability and attract investment in Electronic System Design and Manufacturing  sector, M-SIPS was approved in July 2012. Revisions were made in the scheme in 2015 by expanding its scope and adding new product categories accompanied by simplification of procedures. The scheme provides 20-25% of capex subsidy on investment made in the first 5 years of the project  and 25% in non-SEZs). The incentives are available for 44 categories / verticals of electronic products and components covering entire electronics manufacturing value chain. The scheme was open to receive applications till 31.12.2018. Most of the projects approved under the scheme are in the implementation mode. So far, 314 applicants with an investment of INR 86,912 crore and committed incentives of INR 9,544 crore have been approved. Incentives amounting to INR 1781.02 crore have been disbursed. Out of 314 units approved, 271 units have invested INR 31,416 crore and 233 units have started production.
Electronics Manufacturing Clusters  Scheme: Electronics Manufacturing Clusters Scheme was notified on 22nd October, 2012 to provide support for creation of world-class infrastructure along with common facilities and amenities for attracting investment. Under the Scheme, 19 Greenfield EMCs and 3 Common Facility Centres  measuring an area of 3,464acres with total project cost of INR 3,743 crore including Government Grant-in-Aid of INR 1,527 crore have been approved.
Electronics Development Fund : Electronics Development Fund  has been set up as a “Fund of Funds” to participate in professionally managed “Daughter Funds” which in turn will provide risk capital to startups and companies developing new technologies in the area of electronics and Information Technology . This fund is expected to foster R&D and innovation in these technology sectors. INR 409 crore has been committed through EDF to 9 Daughter Funds with a targeted corpus of INR 2,626 crore. Till date, EDF has invested INR 236.48 crore in 8 Daughter funds with direct employment generation of 18,500.
Phased Manufacturing Programme  has been notified to promote domestic value addition in mobile phones and their sub-assemblies / parts manufacturing. As a result, India has rapidly started attracting investments into this sector and significant manufacturing capacities have been set up in the country. The manufacturing of mobile phones has been steadily moving from Semi Knocked Down  to Completely Knocked Down  level, thereby progressively increasing the domestic value addition.
Tariff Structure has been rationalized to promote domestic manufacturing of electronic goods, including, inter-alia, Cellular mobile phones, Televisions, Electronic components, Set Top Boxes for TV, LED products and Medical electronics equipment.
Exemption from Basic Customs Duty on capital goods: Notified capital goods for manufacture of specified electronic goods are permitted for import at “NIL” Basic Customs Duty.
Simplified import of used plant and machinery: The import of used plant and machinery having a residual life of at least 5 years for use by the electronics manufacturing industry has been simplified through the amendment of Hazardous and Other Wastes  Rules, 2016, vide Ministry of Environment, Forest and Climate Change Notification dated 11.06.2018.
Relaxing the ageing restriction: The Department of Revenue vide Notification No.60/2018-Customs dated 11.09.2018 has amended the Notification No.158/95-Customs dated 14.11.1995, relaxing the ageing restriction from 3 years to 7 years for specified electronic goods manufactured in India and re-imported into India for repairs or reconditioning.
Public Procurement  Order 2017: To encourage ‘Make in India’ and to promote manufacturing and production of goods and services in India with a view to enhancing income and employment, the Government has issued Public Procurement  Order 2017 vide the Department for Promotion of Industry and Internal Trade  Order dated 15.06.2017 and subsequent revisions vide Orders dated 28.05.2018, 29.05.2019, 04.06.2020 and 16.09.2020. In furtherance of the aforesaid Order, MeitY vide Notification dated 07.09.2020 has notified mechanism for calculating local content for 13 Electronic Products viz.,  Desktop PCs,  Thin Clients,  Computer Monitors,  Laptop PCs,  Tablet PCs,  Dot Matrix Printers,  Contact and Contactless Smart Cards,  LED Products,  Biometric Access Control / Authentication Devices,  Biometric Finger Print Sensors,  Biometric Iris Sensors,  Servers, and  Cellular Mobile Phones, for procurement to be made from locals suppliers.
Compulsory Registration Order : MeitY has notified “Electronics and Information Technology Goods  Order, 2012” for mandatory compliance to ensure safety of Indian citizens by curbing import of substandard and unsafe electronic goods into India. 63 Product Categories have been notified under the CRO and the order is applicable on all product categories.
This information was given by the Minister of State for Electronics and Information Technology, Shri Rajeev Chandrasekhar in a written reply to a question in Lok Sabha today.